On March 21, 2016, the Illinois First District Appellate Court upheld the ruling of an Illinois county judge, who stayed a civil legal malpractice case, because a parallel criminal case was still ongoing against the alleged perpetrator of a fraudulent investment scheme. The malpractice claim was against the firm, Chuhak & Tecson, whose attorney, Gary Stern, allegedly misled investors by convincing them to invest in fuel tax credit partnerships.
The appeal involved the question whether the lower court properly granted a stay of the malpractice case, while the federal criminal case was still ongoing in the tax court, and notwithstanding the fact that Stern was not personally named as a defendant in the malpractice case.
The civil action had been filed in 2012 by 21 investors, who were clients of an accountant familiar to the law firm. Stern solicited their interest in the gas partnerships, seeking tax credits for non-conventional source fuels, geared toward reuse of methane gas from landfills.